Fall down seven times.
Stand up eight.
It's more than just an ancient Japanese proverb. The thought-provoking mantra just happens to be the marketing slogan behind Dwyane Wade's new shoes, put out by Nike's Converse division.
After Wade's MVP performance in bringing the Miami Heat franchise its first NBA championship, it's clear that the acrobatic, third-year hoopster knows that if you get up one more time than you stumble, you will always wind up on top.
In today's iffy market, it's a strategy that may also serve you and your portfolio well.
Diving into the Wade pool
Corrections happen. Bear markets growl. Being a successful investor doesn't mean sidestepping the downturns as much as making sure you are around when the market bounces back. That means choosing perseverance over market timing, but there is no harm in stacking the odds in your favor by taking advantage of market lulls to fortify your positions. As long as they're sound, Wade's proverb will hold up in the long run.
It works for me. I wasn't all that impressed with the Netflix
The market has clearly been kicked in the shins over the past two months. That doesn't mean that it will stay down. Eventually, corporate profits, gradual inflation, and a reversal of sentiment will send the market to higher highs.
If this seems too rah-rah for you, let's break it down to the most basic level. The same shares of Apple Computer
Apple is as shiny, if not shinier, than it was back in January. It's just cheaper. And here's the beauty of cheap math. If a stock is trading 33% lower, it will have to climb 50% higher to get back to its earlier level.
Let's apply that math to Sirius Satellite Radio
I'm a believer in satellite radio. The top-line growth is stellar. The quality of the product is undeniable. You can take your knocks on the huge quarterly deficits and the costly customer acquisition costs, but let's dig into the stock's trading history. In December 2004, the shares were riding high on the signing of Howard Stern and were changing hands at as much as $9.43. The stock has been more than halved, meaning that it would have to more than double before approaching its all-time peak.
In that time, the company has grown several times over in terms of subscriber count and revenue. It's a company led by a broadcasting veteran and is on a tear in the past few quarters in landing new listeners. Love it? Hate it? We can probably agree that given the fundamentals, the stock is a better value now than it was 18 months ago. It just fell down. Now it just needs to muster the strength to stand up again.
Scoring the big points
I was blessed with the opportunity to catch the fourth and fifth games of the NBA Finals in person. Granted, it was up in the nosebleed section seats, but the basket seemed to open wider every single time that Wade put up a jump shot or banked it off the glass in the paint.
In each of the final four games of the series, Wade scored at least 36 points. Even as Dallas put up a worthy defensive front by having two or three tenacious defenders on him at times, all Wade had to do was back away with a fadeaway jumper. He'd walk away with a bucket, a trip to the free-throw line, or both.
Do you think you can rack up some serious points if you invested that way? You bet. That's why embracing the recent market malaise is a golden opportunity. If bears are crowding your shot, fade back and trust your due diligence as you go for the score.
The Motley Fool Rule Breakers newsletter service doesn't have a problem with that. Taser
Rule Breakers returns are squarely beating the market, but there are plenty of dynamic picks from the past two years that are trading at marked-down prices. Relatively sturdy entities like alternative energy play Headwaters
So don't let the sea of waving hands or the hostile playing environment cramp your investing style. You know growth stocks. You know what works. Take a shot. Maybe you'll stumble. Maybe you won't. Always remember to stand up in the end.
Taser , Headwaters, and IMAX are active recommendations. The Rule Breakers selections and various interactive and stand-alone research tools are available to paying subscribers as well as new members taking advantage of a free 30-day guest pass to kick the tires and go for nothing but net.
Longtime Fool contributor Rick Munarriz has been writing the "Early Adopter Roundup" column since the newsletter's inception in the fall of 2004 and i s part of the Rule Breakers research team, seeking out tomorrow's ultimate growth stocks a day early. He owns shares of Netflix, which is a Stock Advisor recommendation. TheFool has adisclosure policy.